QUESTION

In the world over while doing business, to be green i.e. presumed environmentall !riendl is
highl emphasi"ed. #s a strategist o! a $ertain $ompan, using the %&s o! mar'eting mi( )produ$t,
pri$e, promotion, pla$e, pa$'aging, pro$ess, people and phsi$al eviden$e* demonstrate how ou
would ensure the $on$ept o! +reenness in our organi"ation.
Many companies, driven by consumer awareness and emerging environmental realities, are embracing
the business value of going green. What exactly does going green mean?
Going green is a term often used in todays environment!conscious society. Green, in this instance, is
a term for anything and everything that has a positive effect on the environment. Going green involves
raising the level of global awareness about the environment and how to protect it, creating systems of
processes that work towards the reduction of harmful chemicals and substances that we put back into
the environment, finding alternative sources of energy that emit the least amount of pollutants back into
the land, the water and the air and, most importantly, implementing programs to replenish the natural
resources that have been consumed and repair what has been damaged by man's industrial activities.
"his discussion see#s to show how an organi$ation can ma#e efforts to go green, and remain green.
Greening a business has several advantages. %nvironmentally!friendly business practices can yield
enormous rewards, both for the environment and the business. &eing green can save money from
reduced waste and increased efficiency, bring peace of mind from reduced concerns about health and
safety liability, improve public relations, improve employee pride and morale, attract green consumers,
attract motivated employees, differentiate your business from competitors, provide flexibility in
uncertain times, minimi$e ris#, financial and otherwise, from the impacts of climate change and
demonstrate leadership and commitment. 'n organisation that puts in place measures to be
environmentally!friendly sees a reduction in its business( overhead costs. )romoting its green
credentials helps it stand out against its competitors, creating uni*ue selling points that will help in its
growth. +++,esearch shows that over -. per cent of consumers thin# it is important to buy from
environmentally responsible companies. &eing recognised as a green organisation can boost sales,
increase interest in an organisation, improve brand awareness and build brand loyalty.
/reating a greener business means establishing an awareness of a companys impact on the
environment and fostering a culture that minimi$es this impact. ' strategic approach to greening puts a
business on the path to sustainability and provides the flexibility to thrive in the long term.
"he idea of fusing an environmentally!friendly approach with a company(s mar#eting strategies is
called green mar#eting. ' company can ma#e efforts to green its mar#eting mix. 0 will especially loo#
at how greening the 1)s of mar#eting mix can ensure an organisation(s adoption of environmentally!
friendly ways of doing business.
"here are several different definitions of green mar#eting according to different scholars. Mc2aniel
and ,ylander 345567, for example, have coined the term green mar#eting to describe mar#eters efforts
to develop strategies targeting the environmental consumer. )olons#y defines green mar#eting as8
Green or %nvironmental Mar#eting consists of all activities designed to generate and facilitate any
exchanges intended to satisfy human needs or wants, such that the satisfaction of these needs and wants
occurs, with minimal detrimental impact on the natural environment 3)olons#y, 4559, p. :7. )ra#ash
3:;;:7 argues that the relationship between the mar#eting discipline, the public policy process and the
natural environment is of great importance. Green mar#eting is lin#ed with the strategy to promote
products by using environmental claims either about their characteristics or about the system policies
and processes of the companies that manufacture or sell them 3)ra#ash, :;;:7. "he common public
opinion about green mar#eting is that it refers only to the promotion or advertising of products with
environmental attributes 3)olons#y, 45597. <owever, )olons#y 345597 claims that green mar#eting
contains a broad range of activities, such as product modification, changes to the production, pac#aging
alterations, as well as modifying advertising. 'ccording to Menon and Menon 3455=7, green mar#eting
is also a part of the overall corporate strategy. 0t re*uires that companies manipulate the mar#eting mix,
as well as understand public policy processes 3)ra#ash, :;;:7. >ttman 3:;;-7 claims the first rule of
traditional mar#eting, as well as of green mar#eting is to focus on customers benefits. "oday many
companies strive to grow and increase their profits. 2uring the last decade, a lot of companies have
tried to create competitive advantages by becoming more environmentally responsible. ?owadays,
some companies try to green everything from their ground level manufacturing to their top
management.
>ne way of being environmentally friendly is to use green mar#eting. Green mar#eting is today used
by many companies and it deals with all the activities designed to generate and facilitate any exchanges
intended to satisfy human needs and wants, with a minimal effect on the natural environment
3)olons#y, 45597.
' number of laws and legislations in the world have been issued in this regard. 0n response to such
legislations and appeals from official and non!official bodies, many business organi$ations started
reconsidering their social and ethical responsibility towards the community, giving the environmental
dimension a prominent importance in their productive and mar#eting strategies.
<ow can an organisation green its mar#eting mix and ensure its business remains profitable? "he 1)s
of mar#eting mix are product, price, promotion, place, pac#aging, process, people and physical
evidence. @et us loo# at how each of these can be used in an organisation(s efforts to go green.
A company can set up green product programs, which are product-related decisions and actions whose
purpose is to protect or benefit the natural environment by conserving energy and/or resources and
reducing pollution and waste. Such programs may involve both strategic and tactical approaches.
Tactically, firms face choices about how they might package and label products in more
environmentally friendly ways. ore strategically, firms may choose to use green product design
techni!ues, which often result in modifications to manufacturing processes "#uller $%%%&. 'ere, the
focus is on developing new environmentally friendly products from inception. #or e(ample, a shoe
manufacturing company might produce shoes which are made largely from recycled materials and use
less glue in their construction.
Green pricing programs concern pricing practices that account for both the economic and
environmental costs of production and marketing, while providing value for customers and a fair profit
for business. Tactically, firms can use pricing actions, such as rebates for returning recyclable
packaging, or charge higher prices for environmentally unfriendly products. #or e(ample, )oca-)ola
introduced its *ecycle+ank to reward ,.S. customers for recycling its bottles "-oldschmidt ./$$&, and
in the ,.0., retailer arks 1 Spencer now charges customers for plastic carrier bags to minimi2e their
use "+el2 and 3eattie .//%&. ore strategic approaches involve techni!ues such as life-cycle costing
"e.g., incorporating product costs from research to disposal&, which help determine prices for products
from a sustainability perspective. #or e(ample, the -erman utility 4.56 allows customers to purchase
green electricity at higher prices to reflect the costs of generating power sustainably. Similarly, Seventh
-eneration sells its range of environmentally responsible household cleaners at significantly higher
prices than regular alternatives to reflect its higher costs.
-reen distribution programs involve actions related to monitoring and improving environmental
performance in the firm7s demand chain. Tactical efforts include working with channel partners to
develop product reuse or disposal arrangements and ensuring customers are able to return recyclable
materials. #or e(ample, 'ewlett-3ackard has partnered with Staples in its 8authori2ed recycling
location9 program for printer ink cartridges. Strategically, firms may create policies re!uiring suppliers
and distributors to adopt more environmentally responsible standards in fulfilling their respective
marketing roles. Alternatively, firms may form 8eco-alliances9 with channel partners to improve the
environmental impact of their :oint activities, such as reconfiguring logistics arrangements to make
them environmentally efficient "e.g., fewer and fuller cargos&. #or e(ample, some of the world7s
leading consumer goods firms "e.g., 3epsi, 6estl;, <75real& have collaborated with Tesco, one of their
largest retail partners, to form the Supply )hain <eadership )oalition, which promotes ways to reduce
the carbon footprint of their supply-to-consumer distribution activities.
' communication with the mar#et should put stress on environmental aspects, for example that the
company possesses a /) certificate or is 0A> 49;;; certified. "his may be publici$ed to improve a
firms image. Burthermore, the fact that a company spends expenditures on environmental protection
should be advertised. "hird, sponsoring the natural environment is also very important. 'nd last but not
least, ecological products will probably re*uire special sales promotions. Green promotion programs
reflect communications designed to inform sta#eholders about the firms efforts, commitment, and
achievements toward environmental preservation. "actically, this may also involve actions to reduce
any negative environmental impact of the firms mar#eting communication efforts. Bor example, 2ell
has switched to using, on average, .;C recycled paper in its direct mail catalogs , and 0?G 2irect has
lin#ed all its printed promotional materials to carbon!offsetting programs. More strategic green
promotion approaches are those designed to communicate the environmental benefits of the firms
goods and services. Auch efforts may include advertising environmental appeals and claims,
publici$ing environmental efforts, and incorporating environmental claims on product pac#aging. Bor
example, "imberland introduced its Green 0ndex rating system to communicate the environmental
impact of each "imberland product to consumers. Mean while, in the D.E., )rocter F Gamble touted
the success of its campaign to lower consumers washer temperatures to benefit from advancements in
'riels technology as saving -;,;;; " of carbon dioxide annually.
&ro$ess, 2o your mar#eting personnel have a process to follow? 're they strategic? 're they
proactive? 2o they create and follow a plan and budgetG and then report against it? 're they
measuring their efforts? Aame goes for your sales teamG do they have a plan? 2o they prioriti$e their
clients? 're they recordingHtrac#ing their efforts? 0s there a plan for generating and nurturing leads?
0s there a clear territory and commission plan in place?
&eople, "hin#ing about your employees is more than Iust your mar#eting teams talent and your
salespeoples selling s#ills, though those two groups are vitally important. 'ny employee who
Jtouches a client or prospective client falls into this category. 're they prepared to tal# to clients about
your firm and its services? 2o they understand the process for handling client interactions? 2o they
have the communication s#ills to be effective? 0s there any training re*uired to ma#e them better? 're
they empowered to act on the companys behalf? 2o they live the brand?
W'A"% ,%2D/"0>?
Minimise waste where you can. ,educe your bill for raw materials by minimising off!cuts and reIects
in your production processes. ,educe the amount of pac#aging you use. Bollow the waste hierarchy8
%liminate or reduce8 Kou can reduce the amount of waste you produce in a number of ways, including
simplifying and reducing the amount of pac#aging you use, reducing off!cuts and reIects, sending
information electronically, purchasing material in bul# and using returnable containers. ,e!use8 ,educe
your costs by re!using boxes and printer toner cartridges and use misprints and draft documents as
scrap paper. Waste furniture and textiles may be of use to charities or to waste exchange groups.
,ecycle8 Apea# to your local recycling centre or waste management contractor to find out what
materials they can recycle, and how they should be segregated. 2isposal8 "his is the last resort after the
steps above. /ontact your waste management contractor to discuss options li#e recycling to ma#e
waste disposal more efficient and economic.
-h go green.
)olons#y 345597 identifies several reasons of why companies should adopt green mar!
#eting8 Aocial responsibility, opportunities, governmental pressure, cost or profit issues
and competitive pressure.
9.:.4
Aocial ,esponsibility
/ompanies are reali$ing that they are members of a wider community, and thus have to
behave in a way that is friendly for the environment 3)olons#y, 45597. "his means that
companies reali$e that they must both achieve environmental obIectives as well as profit
related obIectives. "his ac#nowledgement means that companies integrate environmen!
tal issues into the companies corporate culture. )olons#y 345597 says that there are two
perspectives available for companies in this situation8
4. /ompanies can use their environmental consciousness as a mar#eting tool.
:. /ompanies can be environmentally responsible without promoting this fact.
4;Many companies desire is to implement both approaches simultaneously. Auch compa!
nies try to offer environmentally responsible solutions to their customers. Moreover, by
mar#eting this behavior they can create a competitive advantage 3)olons#y, 45597.
9.:.:
>pportunities
's people are becoming more concerned for the environment, the benefits of adopting
green mar#eting are increasing 3)olons#y, 45597. /ompanies that have adopted green
mar#eting into their corporate strategy can enIoy sustainable competitive advantage
over the companies who are mar#eting non!environmentally responsible alternatives
3)olons#y, 45597. 'lso, first!movers that adopt green mar#eting improve their image by
reacting to mar#et incentives instead of government regulations 3Mc2aniel and ,ylan!
der, 45567.
<owever, green mar#eting is not always beneficial because companies may use it to
mislead their consumers in attempt to gain mar#et share. 'ccording to )olons#y 345597,
companies have used false claims of the effectiveness of their products, as well as of the
accuracy of their behavior. "his often leads to companies losing both customers and
mar#et share 3)olons#y, 45597. >ther factors that can negatively affect the mar#et share
are that companies that employ green mar#eting, but are not first!movers, may be seen
as imitators. /ustomers may be s#eptical of these latecomers true intent 3Mc2aniel and
,ylander, 45567.
9.:.6
Governmental pressure
0n all mar#eting related activities governments try to protect consumersL this is true for
green mar#eting as well. )olons#y 345597 identifies several ways where governments
protect the consumers and the society. Governments try to8
4. ,educe production of harmful goods or by!products.
:. /hange consumer and industrys use and consumption of harmful goods.
6. %nsure that all types of customers have the ability to evaluate the environmental
composition of goods.
Governments try to establish regulations that control the amount of dangerous waste
produced by companies. "hey also issue various environmental licenses in order to con!
trol by!products of production, which modifies organi$ational behavior 3)olons#y,
4445597. Burthermore, governments try to encourage final consumers to become more en!
vironmentally responsible. "his triggers companies will to become environmentally re!
sponsible, as they satisfy their customers better. Moreover, governments publici$e envi!
ronmental regulations that control green mar#eting claims. "he %nvironmental /laims
in Mar#eting M ' Guideline and the Guides for the Dse of %nvironmental Mar#eting
/laims are examples of these publicly available documents 3)olons#y, 45597. "hese
regulations ma#e sure that customers have appropriate information, which enables them
to evaluate companies environmental claims. 0n, for example, the DA' many Atates
have stricter rules than the publici$ed environmental guidelines issued by the country.
"hus governmental attempts to protect consumers from false and misleading claims
provide consumers with the ability to ma#e more informed decisions 3)olons#y, 45597.
9.:.9
/ompetitive pressure
"he activities by a companys competitors influence the company to modify its strategy.
Many companies observe competitors promoting their environmental behaviors and
they try to follow suit. 's mentioned above, Mc2aniel and ,ylander 345567 identify
companies competitors as a potential reason for the change in companies environmen!
tal behavior. Burthermore, Mc2aniel and ,ylander 345567 discuss the effects of being a
first!mover or a follower.
9.:..
/ost or profit issues
Aome companies also use green mar#eting in an attempt to address cost or profit related
issues. 'ccording to '$$one and Man$ini 345597, environmental issues can improve the
performance of companies. Green mar#eting acts both on revenues and costs. ' green
mar#eting strategy often leads to higher revenues 3'$$one and Man$ini, 45597. <owev!
er, more limiting environmental standards can increase manufacturing and non!
manufacturing costs. >n the other hand, when companies focus on improving environ!
mental performances it might result in less waste, which in turn lowers costs 3'$$one
and Man$ini, 45597. )olons#y 345597 argues that when trying to reduce waste, compa!
nies are often forced to re!examine their production processes. "his often leads to better
production processes that both reduce waste and reduce the need for raw materials 3)o!
lons#y, 45597. 'lso, companies sometimes attempt to find end!of!pipe solutions in!
stead of reducing waste. "his means that companies try to find other mar#ets where
4:their waste materials can be used as an input of production 3)olons#y, 45597. )olons#y
345597 also claims that cost or profit issues may affect companies environmental mar!
#eting activities in the way that industries may be developed. Kurman 345597 identifies
two ways in which this can happen 3cited in )olons#y, 455978
4. /ompany develops a technology for reducing waste and sell it to other compa!
niesL or
:. Waste recycling or removal industry develops.
Green Mar#eting strategies
2efensive vs. 'ssertive
Mc2aniel and ,ylander 345567 lin# the term green mar#eting to mar#eters attempts to
develop strategies targeting environmental consumers. Burthermore, mar#eters should
understand the environmental problems and be able to include these issues into the stra!
tegic mar#eting management process 3Mc2aniel and ,ylander, 45567.
Mc2aniel and ,ylander 345567 provide two approaches to green mar#eting8 defensive
and assertive. /ompanies that use the defensive approach do the minimum in order to
avoid negative conse*uences. "o avoid penalties these companies meet only the mini!
mum environmental regulations imposed by the government. Mc2aniel and ,ylander
345567 believe that most of the companies, which ta#e a defensive approach to green
mar#eting, will not encounter significant increase in mar#et acceptance. Burthermore,
these companies are not li#ely to gain a competitive advantage in this dimension
3Mc2aniel and ,ylander, 45567.
"he second approach is an assertive approach. /ompanies that use the assertive ap!
proach have the best opportunity for a sustainable competitive advantage in this dimen!
sion 3Mc2aniel and ,ylander, 45567. Burthermore, this approach often involves having
the advantage of being a first mover. 'lso, the assertive approach responds to mar#et
incentives rather than government regulations, meaning that companies exceed what is
re*uired by, for example, governments.
46Mc2aniel and ,ylander 345567 emphasi$e the importance of being a first mover. 0n
green mar#eting the first mover advantage is important because the companies follow!
ing the same practices might be considered imitators Iumping on the green bandwagon
3Mc2aniel and ,ylander, 45567. Burthermore, the first mover advantage re*uires good
strategic mar#eting in order to create an image of a sincere environmental activist. "his
creates the basis for sustainable competitive advantage. >ther benefits of the assertive
approach include that government agencies are less prone to investigate and control the
companies who adopt this approach.
9.6.:
@ean, 2efensive, Ahaded and %xtreme.
'ccording to Ginsberg and &loom 3:;;97, managers of green companies must as#
themselves two main *uestions, with some sub!*uestions, regarding a green mar#eting
strategy8
4. <ow substantial is the green consumer segment for the company?
a. /an the company increase revenues by improving on perceived green!
ness?
b. Would the business suffer a financial blow if the consumers Iudged the
company to be inade*uately green? orL
c. 're there plenty of consumers who are indifferent to the issue that the
company can serve profitably?
:. /an the brand or company be differentiated on the green dimension?
a. 2oes the company have the resources, and understanding of what it
means to be green in its industry and internal commitment at the highest
management levels to be green?
b. /an competitors be beaten on this dimension, or are some so entrenched
in the green space that competing with them on environmental issues
would be very expensive and frustrating?
"he *uestions help green companies to determine how much they should emphasi$e
their greenness as a differentiating feature in its mar#eting 3Ginsberg and &loom, :;;97.
"he level of investments in environmentally friendly business practices is, however, not
covered by these *uestions, but rather depends on other factors. 0n accordance with the
49answers of the *uestions above, green companies can choose one of the following strat!
egies8 @ean green, 2efensive green, Ahaded green and %xtreme green 3see Bigure 9!47.
Green mar#eting mix elements8
0nternal mar#eting mix8
4. &rodu$t8 in order to succeed, business organi$ations must respond to the needs and desires of
customers, especially on the part of the matters which are related to the environment. Auch
organi$ations must have the customers satisfaction as their first priority. )ride and Berrell, :;;, p.:.;
have defined the product as a physical and non physical material that can be obtained through
exchange. >rgani$ations strive to form a good reputation in the minds of customers using many
strategies that aim to protect the customer and the environment. >ften, organi$ations withdraw any of
its products in the mar#et if they figure out the fact that such products have negative effects on the
environment or customers so as to maintain their perceived image for customers and avoid having
problems with governments and green movements.
: ! &ri$e8 "he price is considered one of the general and simple concepts which is often accompanied
by a #ind of misunderstanding due to the capacity and comprehensiveness of such a conceptL Eotler
and 'rmstrong, 45558 p6;: defines it as a group of monetary values which he replaces by the benefits,
possession or use of products or services. Auch definition refers to the fact that the customer uses the
monetary power in order to benefit from the item and the serviceL the customer who wishes to obtain
green products will be responsible for paying higher prices to get them because the additional cost
associated with the production process is added to such products especially the costs of research and
development being constant for obtaining the raw materials which are not harmful to the environment.
6. /istribution8 it is considered one of the most important activities in the mar#eting process and it
represents one of the pillars of the mar#eting mixL retailers and distributors benefit from using the
philosophy of green mar#eting in order to serve their interests through strengthening their relations
with their clients because of the continuing relevance and permanence of the relationship with the two
parties through a two!way distribution system that is used in the green mar#eting philosophy rather
than the traditional system 3'l!&a#ri and 'l!?ouri :;;=85;7. "he two!way distribution system depends
largely on what is #nown as the recycling process which is defined by 3'l!?ouri :;;98:=7 as the
process of re!cycling the remnants of the materials used such as empty containers, plastic bags and
leaves ... etc. to their places of production, #nown as the point of sale, rather than throwing them. Auch
a system is followed in many countries of the world but in different waysL for example, in the Dnited
Atates of 'merica, there are speciali$ed organi$ations for re!collecting plastic and glass containers and
they contract with organi$ations that own trademar#s in order to send them the empty containers after
sorting them for a certain amount of money for each item.
9. &romotion8 it is considered one of the elements of the main green mar#eting mix and defined as the
communication process which aims to build a relationship with customers through informing and
convincing them with all that can be sold or mar#eted. 3)ride and Berrell, :;;;8 p96:7. 0t aims to
connect with customers and transfer the orientations of the organi$ation and its environmental image to
them through sending its mar#eting message related to the products or services offered by them. 0t is
consisted of a group of elements which are integrated with each other for the success of the
promotional processL such elements are called the promotional mix elements which include
environmental advertisement and posters, sales and public relations promotion, personal sale, and
pac#aging.
. &rovided in!ormation8 it did not receive a large attention by administrators except in the recent
years that some consider it one of the #ey inputs in the production processes. Borm the part of the green
mar#eting philosophy, it is considered very important for organi$ations, which led them to examine and
control the internal and external issues related to the environmental performance of the organi$ation in
addition to the information on the tastes of customers, their preferences and attitudes to adopt the
organi$ation in the production process as well as the information about how to find raw materials, other
substitutes, suppliers, modes of supply and other information which is essential in the process of
formulating mar#eting decisions 3)eattie, 455:.p.4;= 7.
- Operations8 "he concept of green mar#eting cares greatly in conducting fundamental
transformations for the production processes in the organi$ation. Auch operations must be consistent
with the orientations of green mar#eting that are, green operations, which see# to reduce the amount of
consumption of used energy as well as attempt to cancel defective products in the productivity process,
reduce damage and loss and wor# on the lac# of natural resources depletion. "he process of presenting
green products re*uires significant change procedures in order to be consistent with the obIectives of
the organi$ation under the direction of green mar#eting.
= &oli$ies8 for the success of any business, it is re*uired to develop certain plans, policies and
strategies. 0n light of the philosophy of green mar#eting, administrative policies and procedures must
be conducted in order to carry out control, evaluation and stimulation of the environmental
performance of the organi$ation as well as wor#ing on developing certain strategies that are compatible
with the obIectives of the environmental organi$ation which are consistent with their vision aimed at
protecting and preserving the environment.
1 0ndividuals8 in light of the green mar#eting philosophy, the organi$ation must provide the
administrative staff and the employees who have technical attributes and high belief in the tas# of the
organi$ation regarding #eeping the environment 3peattie, 455:.p.4;17. "his gets wider with the
importance of creativity in the green mar#eting and the fact that the green products are characteri$ed
with developed properties, so the staff using such devices and products must have high creativity in
order to adIust them in line with the wishes and needs of customers and environmental re*uirementsL it
is also necessary to test the appropriate promotional tools for the success of the mar#eting process.
0E1O22EN/#TIONS
&ased on the above, the study recommends the following8
4. "a#ing care of the fundamental shifts of the production processes ma#ing them consistent with the
orientations of the green mar#eting which are the green operations.
:. Bormulating plans, policies and strategies for the companies in the light of the philosophy of the
green
mar#eting in addition to setting policies and procedures.
6. Wor#ing on not depleting the natural resources and presenting green products which re*uire
significant
change in order to be consistent with the organi$ation(s goals.
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